Unlawful terms

These are terms or clauses in an enterprise agreement that violate employment law. For instance, a term that discriminates against employees based on their race or gender would be unlawful. Similarly, clauses that deny employees their legal rights, like the right to take leave, are also not permissible. Such terms are invalid and unenforceable because they go against the legal standards set for fair and equitable employment practices.

Examples of unlawful terms

Under section 194 of the Fair Work Act, unlawful terms in an enterprise agreement include discriminatory terms, objectionable terms that permit or require a breach of the general protections, terms that let employees claim unfair dismissal before they complete the minimum employment period, terms about industrial action that is not protected, and certain right of entry terms. The Fair Work Commission will not approve an agreement that contains an unlawful term, and an unlawful term has no effect. For example, a term that lets the employer dismiss employees for joining a union would be unlawful.

Read our guide to enterprise agreements.